NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7404
SPONSOR: Solages
 
TITLE OF BILL:
An act to amend the state finance law, in relation to requiring the
public posting of certain contracts otherwise subject to prior approval
of the comptroller
 
PURPOSE:
This legislation amends the State Finance Law to require all current and
future exempted and emergency State contracts to be publicly posted.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill amends the State Finance Law by adding a new
section 149 to provide the following:
State Finance Law section 149 (1) provides definitions for "emergency
contracts" and "exempted contracts" as they are used in this section.
State Finance Law section 149 (2) requires that all emergency and
exempted contracts be publicly posted by the contracting entity. Each
contract shall be published with:
* the relevant emergency declaration or provision suspending or exempt-
ing prior Comptroller review;
* a brief description of the contract, including, the amount of the
contract, the name of the vendor(s), the contract term, what is being
provided by the contract, and if the contract is an emergency contract,
a statement explaining how the contract relates to the declared state
disaster emergency; and
* a statement explaining whether the contract was chosen on a compet-
itive basis, and if not, an explanation why a competitive process was
not undertaken.
State Finance Law section 149 (3) requires that any emergency or
exempted contract still in effect at the time of this bill's effective
date be publicly posted. State Finance Law section 149 (4) provides
that this section cannot be suspended, modified, or altered by the
governor during a state disaster emergency pursuant to section twenty-
nine-a of the executive law.
Section 2 of this bill provides for an effective date.
 
JUSTIFICATION:
Providing independent review and oversight of State entity contracts is
a core function of the Office of the State Comptroller. OSC oversight
promotes transparency, enhances accountability and protects taxpayers,
agencies, not-for-profit organizations and vendors contracting with the
State by validating that a contract's costs are reasonable, its terms
are favorable to the State, and a level playing field existed for all
bidders.
Over the last decade, it has become common practice to exempt certain
contracts from OSC review and approval through Executive and Legislative
actions. This bill intends to restore transparency and shine a light on
contracts that have been exempted from OSC review and approval by
requiring the State entity to publicly post any such contracts executed
under a Legislative exemption or pursuant to an Executive exemption,
such as a state disaster emergency. This bill also requires the State
agency or State authority to note the Executive action or Legislative
action that exempted such contract, and to provide a brief description
of the contract. This effort would improve transparency in the State
government contracting process and increase accountability in State
government.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This bill will take effect on the thirtieth day after it has become law.
STATE OF NEW YORK
________________________________________________________________________
7404
2023-2024 Regular Sessions
IN ASSEMBLY
May 19, 2023
___________
Introduced by M. of A. SOLAGES, McDONALD, ZEBROWSKI -- (at request of
the State Comptroller) -- read once and referred to the Committee on
Governmental Operations
AN ACT to amend the state finance law, in relation to requiring the
public posting of certain contracts otherwise subject to prior
approval of the comptroller
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The state finance law is amended by adding a new section
2 149 to read as follows:
3 § 149. Certain contracts to be publicly posted. 1. For purposes of
4 this section, the following definitions shall apply:
5 (a) "emergency contract" shall mean:
6 (i) any contract otherwise subject to prior approval by the comp-
7 troller pursuant to section one hundred twelve of this chapter, which is
8 executed or made effective in accordance with an executive order of the
9 governor temporarily suspending such law, or any part thereof, pursuant
10 to his or her authority under section twenty-nine-a of the executive
11 law; and
12 (ii) any contract otherwise eligible for prior approval by the comp-
13 troller pursuant to any provision of law, including section twenty-eight
14 hundred seventy-nine-a of the public authorities law, which is executed
15 or made effective in accordance with an executive order of the governor
16 temporarily suspending such law, or any part thereof, pursuant to his or
17 her authority under section twenty-nine-a of the executive law.
18 (b) "exempted contract" shall mean:
19 (i) any contract otherwise subject to prior approval by the comp-
20 troller pursuant to section one hundred twelve of this chapter, which is
21 executed or made effective in accordance with any provision of law
22 expressly and specifically suspending the provisions of, exempting, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10212-01-3
A. 7404 2
1 otherwise notwithstanding section one hundred twelve of this chapter, or
2 any part thereof; and
3 (ii) any contract otherwise eligible for prior approval by the comp-
4 troller pursuant to any provision of law, including section twenty-eight
5 hundred seventy-nine-a of the public authorities law, which is executed
6 or made effective in accordance with any provision of law suspending the
7 provisions of, exempting, or otherwise notwithstanding such law, or any
8 part thereof.
9 2. Within thirty days following the execution of an emergency contract
10 or an exempted contract, such state agency, department, board, officer,
11 commission, state authority, or institution shall post on the contract-
12 ing entity's public website, the emergency contract or exempted contract
13 as well as the following information:
14 (a) if the contract is an emergency contract, the emergency declara-
15 tion that such contract pertains to and, if the contract is an exempted
16 contract, the provision of law suspended or exempted;
17 (b) a brief description of the contract, including: (i) the amount of
18 the contract; (ii) the name of the vendor or vendors; (iii) the contract
19 term; (iv) what is being provided by the contract; and (v) if the
20 contract is an emergency contract, a statement explaining how the
21 contract relates to the declared state disaster emergency; and
22 (c) whether the contract was awarded based on a competitive process
23 and, if not awarded pursuant to a competitive process, an explanation of
24 why a competitive process was not undertaken.
25 3. All emergency contracts or exempted contracts currently in effect
26 upon the effective date of this section shall also be posted on the
27 contracting entity's public website within thirty days with the informa-
28 tion required in subdivision two of this section.
29 4. The provisions of this section cannot be suspended, modified, or
30 altered by the governor's authority to temporarily suspend provisions of
31 law during a state disaster emergency pursuant to section twenty-nine-a
32 of the executive law.
33 § 2. This act shall take effect on the thirtieth day after it shall
34 have become a law.